The U.S. Bond Enhanced Index Fund seeks to provide a total return that matches or incrementally exceeds the performance of the U.S. investment-grade bond market.

Strategy

The U.S. Bond Enhanced Index Fund seeks to provide a total return that matches or incrementally exceeds the performance of the U.S. investment-grade bond market by investing in a range of bonds representative of the Barclays Capital U.S. Aggregate Index. In addition, the fund's attempt to achieve incremental returns above the index could result in a greater chance that the fund's returns will deviate from the returns of its benchmark when compared with a fund that strictly follows a passive indexing strategy.

Click on the risk/reward spectrum below to view the funds in that category

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The U.S. Bond Enhanced Index Fund gives income investors a cost-effective way to seek to approximate the performance of the broad investment-grade bond market. It has an intermediate risk/reward profile and should offer a higher yield than less volatile short-term bond funds and a lower yield than longer-term funds. The fund can serve as a bond fund core holding or as a diversification vehicle for an equity portfolio.

Yield and share price will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. There is also a chance that one of the fund's holdings will have its credit rating downgraded or will default.

*Funds are placed in general risk/return categories based on their 10-year standard deviation or, for newer funds, the standard deviation of the types of securities in which they invest. There is no assurance past trends will continue. As of December 2013.

The mutual funds referred to in this website are offered and sold only to persons residing in the United States and are offered by prospectus only. The prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.Download a prospectus.

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